Top Democrats are urging President Biden to use his executive power to write off up to $ 50,000 in student loan debt for federal student loan borrowers.
On Thursday, a group of Democratic lawmakers led by Senate Majority Leader Chuck Schumer (NY) and Senator Elizabeth Warren (Mass.) Reintroduced a non-binding resolution calling on Biden to write off all the debt of 80% of loan borrowers federal students; approximately 36 million people in the United States The federal government holds $ 1.6 trillion in student loan debt that is owed by over 43 million people.
“We’re not going to give up until we get it done, until $ 50,000 in debt is canceled for every student in the country,” Schumer said at a press conference Thursday.
In response to growing pressure from progressives and Congressional Democrats to cancel debt, the White House has indicated it would be willing to consider doing so unilaterally, although Biden maintained his preference for Congress to pass legislation.
“The president continues to support the cancellation of student debt to provide relief to students and families,” said Jen Psaki, White House press secretary. tweeted Thursday.
“Our team is examining if there are any steps he can take through executive action and he would be happy to be able to sign a bill sent to him by Congress.”
Those who will benefit the most from the Democrat’s proposal are blacks and Latin Americans who historically lack access to higher education, and are more likely to incur student loan debt and fight for repayment. According to at the Center for Responsible Lending, nearly 85% of black bachelor’s graduates have student debt, compared to 69% of white bachelor’s graduates.
Women would also benefit, as they two-thirds of the country’s current student debt. Black female borrowers also finish their undergraduate studies with more debt than other women.
Studies have shown that canceling student loan debt could dramatically increase the wealth of blacks and Latinos and help close the racial wealth gap.
“By writing off up to $ 50,000 in federal student loan debt for borrowers, President Biden can take the most effective executive action available to provide massive stimuli to our economy, help narrow the racial wealth gap and lift this impossible burden of tens of millions of families, ”said Warren in a declaration.
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